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In a Chapter 13 case, unsecured debt is part of your repayment plan. As long as you commit all ?disposable income? to your repayment plan and unsecured creditors receive at least as much as they would have in a Chapter 7 case, you do not have to fully repay all unsecured debts in Chapter 13.
In a Chapter 13 bankruptcy, an unsecured creditor who is not scheduled in or notified of the filing of the bankruptcy case is not discharged at all. Such a creditor will receive no payment from the Chapter 13 Trustee (who, at the very least, needs a dollar-figure debt amount and an address to which to mail a check).
An objection to the confirmation of a chapter 13 plan shall be made by motion setting forth the facts and legal arguments that give rise to the objection in sufficient detail to allow the debtor to file a reply or an amended plan that addresses the objection.
Now, in most consumer cases, creditors don't attend the 341 meeting, even though it's called the meeting of creditors. In probably 95, if not 98% of cases, no creditors actually attend. It's only going to be the trustee that will be asked some questions to verify your financial situation.
Some of the most common types of unsecured creditors include credit card companies, utilities, landlords, hospitals and doctor's offices, and lenders that issue personal or student loans (though education loans carry a special exception that prevents them from being discharged).
A creditor with an unsecured claim has a promise to pay from the borrower but doesn't have a lien. There are two types of unsecured claims: Priority unsecured claims. These debts aren't dischargeable in bankruptcy, and, if money is available, the claim will get paid before nonpriority unsecured claims.
However, each of your creditors must file a proof of claim (described below) within a certain time to prove how much you owe. If a creditor fails to do so, then the bankruptcy trustee will not make any payments to that creditor. In some cases, lack of a proof of claim may benefit you.
In some cases, the plan payment is $200.00/month. Some clients pay 100% of their unsecured debt + 5.25% interest (the highest current maximum).